Conventional: private mortgage insurance (PMI)
Conventional PMI is generally required when a borrower puts less than 20% down, depending on program and loan features. PMI protects the lender, not the homeowner. Its price depends on factors such as credit profile, loan-to-value, loan structure and insurer. It is often a monthly cost; cancellation rules and eligibility depend on the loan and applicable law. Ask for the PMI cost and removal conditions in your specific Loan Estimate and disclosures.
FHA: mortgage insurance premiums (MIP)
FHA loans include mortgage insurance premiums (MIP). Most FHA borrowers pay an upfront mortgage insurance premium and an annual premium collected monthly. In most cases, the upfront premium is financed into the loan amount; it may also be paid at closing. Amounts and duration depend on loan terms, loan-to-value and current FHA rules.
VA: funding fee
The VA funding fee is usually financed into the loan amount, but it can be paid upfront at closing. Some borrowers are exempt. The fee amount depends on the loan type and borrower circumstances.
Compare the whole cost: interest rate, upfront charges, monthly mortgage insurance or fee financing, and how long you expect to keep the loan. Program and investor rules can change.
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